All Forum Posts by: Brian T. Grooms

 Hi Mike,

I have been trying to learn as much as possible about investing away from home. I would love to see your report. Can you point me in the direction where I can find it?

I only own one SF rental property (I own it free and clear) and it has been successfully managed well while I have lived not only out of state, but also abroad for several years. I know the manager well and they have done a great job. Unfortunately in this market (Flagstaff, AZ) there is not much opportunity for cash flow with long term leases.

I am determined to use my equity to begin building a significant portfolio of cash flowing property so that I can reinvest the cash flow. I dont want to be a property manager, I want to build a team and/or "partner" with great managers in markets that offer strong cash flow potential.

Your report would be great to read! Thanks

Bill I see what you are saying and it makes sense, thanks for the advice.

I am not stuck on only purchasing at auction. But I do want to get fully familiar with the basic process. There must be some markets where an auction makes sense and I just want to learn and be ready. I know I have a lot to learn and there are a number of things that make auctions risky for a newb. I will try to find a deal I'm happy with (like Joe suggested above), but also attend an auction and have things in place so that I could pull the trigger at auction if I theoretically wanted to. Then I will at least understand the auction process better and have a normal deal to go after without losing my shirvia auction.

CO is the number 1 choice for us! Really excited to check things out in the general Denver area soon.

also still really liking Joe's advice from above, that really makes sense if trying for an auction property. A llittle worried about needing more experience for an auction but super keen on landing a great deal

Also I need help creating a cash flow calculator for cash flowing rentals.Does anyone have a good template?

Just to up date this..

I have decided for me I will start from the beginning with a property LLC. I like starting an LLC because it forces me to think like a business from the beginning. It automatically makes my mind set focus on more ambitious goals with a company. My property (portfolio if successful) and everything related to it will be separate from my personal affairs.

It is taking me longer than I like to get started. I have been living in Australia the last few years and my wife and I have had delays getting things  in place to get back stateside (she is Aussie, international visa issues suck, talk the ultimate buaeracracy long story short). We will now officially be back stateside in a couple weeks and then we can really get started.

I'm torn on areas and strategy... Im Considering doing air bnb style short terms rentals in Northern AZ or starting in a different area for standard SFR cash flow deals, maybe west TX. We would rather live in the areas where we see the potential for vacation rental success and already have a great property manager /agent to help. But I think we can pull off finding a good manager in the right area we don't live in after taking some in person trips.

My wife and I are not sure where we will move to yet but will be spending a few months with family rent free in NM while we figure it out. We are leaning towards Denver CO area or AZ. There will be other factors to consider after we are back, but ideally we will be able to make it work in these areas. Job potential and current investment / business interests will also dictate this.

Dumb question, but if I do cash out refi on my free and clear property do you guys think it is best to buy properties that cost less with the cash, or is it still possible to just use the cash for down payments and then take out new loans? I am self employed with no set salary. I am not sure what the bank will think especially if we have already pulled out all the equity of my one free and clear property (in the LLC) . I guess I should only focus on commercial lending if this is done through LLC?

Comments?

Thanks for the info so far it has been really good! This community is awesome! I have been taking down pod casts left and right and trying to get more vocal and connect with more of you out there.

Very interested in this area also! I grew up in southeast NM. I remember taking  trips to midland with my dad growing up for business as he is a landman. I have lots of family and friends all over TX and midland/Odessa is no exception. My family almost relocated there a couple of times but ultimately never did. ...

So the oil boom has come and now with increased global supply of oil, prices have tanked and the US oil industry is feeling it. What has happened in midland throughout the last 12 months? Can anyone comment on the general state and change of things?

The boom will continue when oil prices rise again. We know there is more oil/gas to extract with the newer extraction methods.

I am keen on investing in West Texas to cash flow rentals. I don't have much experience, but looks like a good area for this. What impacts have there been on the residential rental market?

Comments anyone?

I will be making a trip to the area in a month or so and will be interested in meeting some BP folks over there.

 Hi Mickie,

Cool, I still haven't made it made it to NZ but hear lots of good things. I really want to visit Christ church! It looks pretty awesome. I have been down under now in total for about 3 years, as I picked up an Aussie wife during my more than a few years of travels and living abroad. It has been great but I am excited to get back closer to my roots again, at least for a while. One reason I am very driven to aggressively build a portfolio of properties is because my wife and I will have to travel a lot due to having families on separate sides of the planet. Also we just love to experience new places. So real estate seems like in the long run can provide a lot of flexibility and financial freedom if done right.

I have only one Rental (SFR), and yes managing it from afar has been pretty easy as I have a great property manager in northern AZ that takes great care of everything. Totally worth the costs for me, no doubt.

My wife and I are pretty keen on moving to the Denver area, and it would be great to get in touch with you when we get up there. I have a lot to learn but have begun browsing properties throughout the southwest in NM, AZ, and CO. Connections with some of your resources would be great.

 Thanks for the warning. I do not have experience with auctions yet. I will be reading the threads and plan to start attending some auctions (trustees/sheriff's sales) to get a feel for things also.

I was also contemplating setting up a business entity and transferring the title from my current property to the LLC (or other entity) and then going after a CLOC. Can anyone comment on this? I thought perhaps that was over thinking it and in due time maybe that is the way to go though given my ambitions. Do you know if there are more or less favorable interest rates for CLOCs vs. HELOCs?

All of my CCs are still fairly low limits, at least not with high enough limits for the price range I am considering buying in. So I just assumed something like that would not be possible. If you can pull it off that sounds pretty good though!

 Laura, thanks for the reply, I see there are likely several possible ways to go about things. You have given me something more to think about. As of now, all of my income is coming from other investments, and although I have good credit I am sure the lack of a salaried job will scare many banks. Sounds to me like a private lender could be a great option for me now..... so much to learn, I will keep this thread updated over time with how I do